The Daily Report: More Tension is Expected

Digital Derivatives MarketsDaily Reports

Trade Alerts

We have received several emails asking why we have only issued several trade alerts so far in March.  We are completely aware of the fundamental influence on the Foreign Exchange market, which has already caused many technical traders to post significant losses. Our policy is to focus on quality rather than quantity. Despite the low number of trade alerts please note our long EURJPY trade was over +400 pips profit, our short trade in the DJ30 was over +300 points profit, USDJPY was over +100 pips and GBPCAD was just over +100 pips. It is unnecessary to issue dozens of the trade alerts per week or per day as all that matters is the Return on Investment (ROI) by the end of the month. You may find all our strategies in the Trade Alerts section and the weekly research.


The Fed statement as we expected was intended to weaken the US Dollar against a basket of currencies. As political tension escalates in Italy and Greece traders seized the opportunity to reload their long USD positions in the Forex market, forcing a moderate retracement to Yellen’s dovish statement.

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The European Central Bank (ECB) third Targeted Long Term Refinance Operation (TLTRO) were published in today’s session, showing EUR 97.84 billion were allocated, 143 bids were made. The TLTRO results increased the bearish pressure on EUR pairs and crosses. Current losses in Euro-Dollar were triggered by market speculations Fitch credit rating agency will cut the rating of Austrian banks. If you are invested in Austrian banks we suggest downsizing your exposure.

Stops and the RBA

Although we have repeatedly mentioned this, the Reserve Bank of Australia (RBA) has warned the Aussie is overvalued in the FX markets. The central bank is unlikely to hesitate to intervene in the market, which is why we are refraining from taking long trades in AUD pairs and crosses. We suggest exercising intraday sell-on-dips strategies until the next RBA monetary policy meeting. Greece is expected to dominate the market on Friday’s session, which may prevent traders from initiating new trades in the market until more clarity is provided. Greece 10-year yields rose to over +11.00% in today’s session.

Traders that do have faith in AUDUSD were reported to have layered their stops at 0.7550. In EURJPY, it appears many traders placed their stops at 128.80, which is relatively close to our stop loss order in the pair, currently at the entry.

If you did not apply for our selected trade alerts packages please note we provide trade alerts in multiple markets including binary options.

Last Updated on April 17, 2015